How Do I Set Up Pay-As-You-Go Holiday Pay?

Pay-as-you-go holiday pay pays annual holiday entitlement as a percentage of gross earnings instead of building an annual holidays balance. It is usually used for qualifying casual or fixed-term arrangements.

1. Open Employees >> Leave >> Leave Settings.
2. Tick Pay annual holidays as you go.
3. Check the Pay-as-you-go holiday %. The standard setting is 8%.
4. Save the employee.

When pay-as-you-go is on, the employee does not accrue a normal annual holidays balance. The leave breakdown will show a pay-as-you-go notice instead of projected annual holidays.

If you turn pay-as-you-go off later, Lightning Payroll starts using the normal annual holidays model again. Review the employee's anniversary date, historic pay data, and any opening balance or manual adjustment rows before processing the next pay.